Suppose the Payments to Capital and Labor Are (W*L*)/Y* = $\times$

question 44

Multiple Choice

Suppose the payments to capital and labor are (w*L*) /Y* = 2/3 and (r*L*) /Y* = 1/3,respectively.One implication of this result is:

• A)(w*L*/r*K*)= Y*.
• B)w*L* - r*K* = Y*.
• C)w*L* \(\times\) r*K* = Y*.
• D)w*L* + r*K* = Y*.
• E)(w*L*/Y*)(r*K*/Y*)= 0.

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Definitions:

Mental Ability

The capacity to perform cognitive tasks, process information, and understand concepts through various mental faculties like reasoning, memory, and problem-solving.

Rudimentary Sense

A basic or elementary level understanding or feeling, often referring to the most simple and fundamental aspects of a concept.

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A species of great ape native to the forests and savannahs of tropical Africa, known for their complex social behaviors and intelligence.

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The attribution of human traits, emotions, or intentions to non-human entities, including animals and deities.